European Stocks Close Higher On Rate Cut Bets, Easing Political Concerns

(RTTNews) - European stocks closed higher on Thursday as rising bets of an interest rate cut from the Federal Reserve, and easing political concerns in France helped underpin sentiment.

Amid a lack of fresh economic data, and concerns over U.S.-China trade tensions, gains were just marginal in some major markets. Investors continued to focus on earnings and other corporate announcements.

French stocks gained and the CAC 40 rose to an eight-month high, as the mood remains firm following the French government surviving no-confidence votes.

France's reappointed Prime Minister Sébastien Lecornu survived successive no-confidence votes in the National Assembly today. His narrow victory comes thanks to enough support from moderates to avert a second government collapse in as many weeks.

Lecornu's offer to suspend an unpopular pension reform helped sway the opposition Socialists, giving his government a lifeline in the deeply fragmented chamber.

The pan European Stoxx 600 climbed 0.69%. The U.K.'s FTSE 100 edged up 0.12%, Germany's DAX gained 0.38% and France's CAC 40 ended 1.38% up. Switzerland's SMI also closed higher by 1.38%.

Among other markets in Europe, Belgium, Denmark, Finland, Ireland, Netherlands, Portugal, Russia and Spain ended with sharp to moderate gains. Norway and Sweden edged up marginally.

Czech Republic, Greece, Iceland, Poland and Turkiye closed weak.

In the UK market, Croda International zoomed 8.5% after reaffirming its full-year outlook. However, the company warned of continued market softness and low order visibility through year-end.

Centrica, Coca-Cola HBC, Rolls-Royce Holdings, Spirax Group, Associated British Foods and Entain gained 2 to 3%.

Next, EasyJet, Ashtead Group, Unilever, Convatec Group, Segro, Dieageo, WPP, Smith & Nephew, SSE, JD Sports Fashion and National Grid climbed 1.2 to 2%.

Whitbread tumbled more than 10% after reporting a 7% drop in half-year profit to 287 million pounds from 309 million pounts a year ago. Adjusted profit before tax declined to 316 million pounds from 340 million pounds.

Metlen Energy & Metals, Admiral Group, Pershing Square Holdings, Phoenix Group Holdings, Rentokil Initial, Mondi, Prudential, Aviva and BT Group lost 1.4 to 3%.

In the German market, Symrise climbed more than 4%. Infineon, Daimler Truck Holding, Rheinmetall, Adidas, BASF, RWE, Siemens, Continental, Qiagen, Deutsche Bank, Beiersdorf, Brenntag, Siemens Healthineers and Fresenius Medical Care gained 1 to 2.3%.

Shares of Laboratory and pharmaceutical supplier Sartorius surged nearly 8% after the company raised its full-year sales forecast after a strong Q3.

Sartorius has raised its full-year sales revenue guidance for the Group and its divisions. The company now expects Group sales revenue to grow by about 7%, compared to the earlier forecast of around 6% organic growth.

Dragerwerk shares are soared nearly 13%. The German medical and safety technology manufacturer gave a more optimistic outlook for the full year following growth in the past quarter.

Merck closed lower by about 4%. Hannover Rueck, Munich RE, Deutsche Boerse and MTU Aero Engines lost 1 to 2.3%.

In the French market, Pernod Ricard rallied more than 4%. After a tough first quarter, the French spirits maker said it expects sales to improve in fiscal year 2026. For the first quarter, Pernod Ricard recorded sales of EUR 2.384 billion, less than EUR 2.783 billion in the same period last year.

Michelin, Legrand, Eurofins Scientific, Edenred, Sanofi, EssilorLuxottica, STMicroElectronics, Engie, Stellantis, Safran, Unibail Rodamco, Teleperformance and Accor also posted strong gains.

Data from the Office for National Statistics showed the UK economy expanded slightly as expected in August. U.K.'s real gross domestic product advanced 0.1% month-on-month in August, reversing a revised 0.1% decline in July.

Total production in the industrial sector grew 0.4% compared to July, while services activity remained flat and the construction sector contracted 0.3%.

The annual growth in GDP eased to 1.3% in August from 1.5% in the prior month.

In the three months to August, real GDP advanced 0.3%, following a 0.2% rise in the three months to July.

The euro area trade surplus decreased in August from a year ago as exports fell faster than imports, official data revealed.

The trade surplus dropped to EUR 1.0 billion in August from EUR 3.0 billion last year, Eurostat reported. In July, the trade surplus was EUR 12.7 billion.